IBM: Architecting a worldwide CRM program

That thing called the Internet was still in its infancy. Yet the writing was on the wall: enterprise hardware and software end users were feeling empowered and emboldened to take purchase decisions into their own hands, and the situation would only accelerate.

For IBM, alarm bells went off: buyers were going off the corporate standards list, which created complex compliance and cost-containment issues. And more customers than ever were looking to engage with their sales teams – and getting incredibly frustrated in the process. IBM’s heavily siloed structure was virtually unnavigable to even the most senior-level customers.  

To combat this while creating an entirely new sales channel, the concept of IBM Gold Service was born. Phase 1: conduct a global audit of IBM’s customer databases and sales processes. Essential steps were identified to address gaps and nonconformity.

Phase 2: Develop a strategy, which ultimately had two pillars: 1) Make procurement a central focus of delivering added value – not only because they were the “tip of the spear,” but also because our audit underscored just how much more influence they were having over supplier selections worldwide; and, 2) Create a single point of contact for every participating company – a concierge if you will, who could quickly and easily direct customers to the right person, at the right time.

After three years in the making, the program grew to include more than 300 corporate customers, all of whom had access to a concierge and custom web site developed for their individual needs (something which, at the time, was novel).

Average revenues for accounts enrolled in the Gold Service Program increased by more than 30% per year. Response rates to emailed offers reached as high at 16%, with up to 22% of responses coming from colleagues of users in the database who received pass-along email offers.

In the time since its inception, the program has morphed in numerous ways, serving as a springboard to multiple innovations.

CREDITS: Agency: Blau Marketing Technologies and Brann Worldwide. Rich Feldman: architect of program strategy, launch plan and components.